Customization and personalization in the Internet economy
نویسنده
چکیده
personalize radio stations. The main data sources of the case study are three interviews, which are analyzed by applying the technique of pattern matching. The results show that some hypotheses are supported by the empirical data, and some are not. The case studies show that companies should follow a mass customization strategy where consumers are involved early in the design and fabrication process, and employ modularity at the assembly and use stages. These companies can be classified as involvers (Duray et al., 2000). The main differences between the proposed hypotheses and the empirical data can be found in complexity and search costs. The case studies show that variety does not necessarily leads to more complexity and higher search costs, because it is not the intention of the supplier to lower the average interaction length of time and in turn to lower search costs for consumers, but to increase interaction to allow the consumer to discover new digital products. The conclusions lead to the revision of the proposed hypotheses, and have implications for theory on digital products and mass customization. Digital products are experience goods, which leads to two important implications. First, instead of lowering the average interaction length of time (Blecker et al., 2006), it is desired to increase the average interaction length of time between the supplier and the consumer. Second, instead of lowering search costs for consumers, it is desired for them to discover as much as new products as possible. This thesis contributed to the existing knowledge of mass customization by determining the strategy to choose when offering customizable digital products, which should be the involver. This thesis contributed to the work of Brynjolfsson et al. (2003), who question whether it is lowering search costs that improves consumer surplus, or discovering obscure products. Where literature suggests that lowering search costs increases consumer surplus, this thesis shows that discovering new digital products outweighs minimization of search costs.
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